CHAPTER 5

THE DIRECTING / LEADING FUNCTION

 5.1 MEANING AND THE NEED FOR LEADERSHIP
 Leading is the management function aimed at setting
the members of an organization move in the direction
that will achieve its objectives.
 Directing builds a climate, provides leadership and arranges
the opportunity for motivation.
 Leading is not deriving or pushing from behind; it is placing
oneself before the group and facilitating progress and inspires
followers to accomplish organizational (group) objectives..
 Leadership is the process of influencing others toward the
achievement of organizational objectives.
 It is a process involving the leader, the led (group or
individual), and a practical goal or a situation.
 leadership has three ingredients: leader, led
(follower) and goal (situation) – organizational
Environment.  
 Leader- the one with the ability/capacity to
understand others’ motivation and to inspire
them with the ability to create a climate for
motivation.
 Follower (led) - the individuals being led or
influenced
 Environment- the working environment in
which the leader interacts with the followers.
 Elements of Directing
Managers to direct individuals require three basic
elements. They are
 Leadership
 Motivation &

 Communication

1. Leadership

is a process whereby an individual influences a group

of individuals to achieve a common goal.
L=F (L, F, S), Where L denotes leadership F- the function of,
L- leader, F-followers and S -the situation
 THE NEED FOR LEADERSHIP
 The need for leadership can be explained by the fact that
organizations will never be successful unless they have effective
and efficient leaders
 Directing initiates actions by giving directives and guidance to
employees.
 Directing integrates employees’ effort by coordinating actions of
the members and leading toward the objectives.
 Directing attempts to get the maximum output of individuals by
providing ways to fully utilize the potentials and capabilities of
employees.
 Directing facilitates changes by incorporating (adopting)
environmental and internal changes into the organization
 Directing provides stability by balancing the different parts of
the organization so that it exists for a long period
 LEADERSHIP STYLES
 is the typical pattern of behavior a leader uses to

influence employees to achieve organizational goals.

 implies the ways in which the leaders exercise leadership.
 is the ways in which the functions of leadership are carried out.

1. Autocratic (Authoritarian) Leadership

 is practiced by the managers concentrating on power and
authority within themselves.
 Known as ‘’ I’’ approach.
 A Leader having this style does not consult staff, nor allowed
to give any input.
 The communication is one way.
 suitable when subordinates are basically lazy and avoiding duties.
 It kills initiative to work and results in frustration among workers.
 2. Bureaucratic Leadership Style

 It is also known as manages “by the book”. Everything

done according to procedure or policy if not covered by
the book, referred to the next level above.
3. Democratic Leadership Style
 also known as participative leadership.
 As the name itself indicates, in this style, the entire group
is involved in goal setting and achieving it.
 A democratic leader follows the majority opinion as
expressed by his group.
 Subordinates have considerable freedom of action.
 The leader shows greater concern for his people’s interest,
is friendly and helpful to them.
 4. Laissez-faire/Free-rein Leadership Style

 The leaders exercise absolutely no control.

 only provides information, materials and facilities to his
subordinates.
 is employee centered and the subordinates are free to
establish their own goals and chart out the course of
action.
 5. Situational Leadership Style
 Effectiveness of leadership depends on the situation.

Three factors that influence which leadership style to use.

1. The manager’s personal background: What personality,
knowledge, values, ethics, and experiences does the
manager have. What does he or she think will work?
2. Staff being supervised: Staff individuals with different
personalities and backgrounds; the leadership style used
will vary depending upon the individual staff and what he
or she will respond best to.
3. The organization: The traditions, values, philosophy, and
concerns of the organization influence how a manager
acts
 Concept and meanings of Leadership theories
A. Great Man Theory
 assumes that the traits of leadership are intrinsic.
 great leaders are ‘’born they are not made’’.
 This theory is based on the belief that leaders are
exceptional people, born with innate qualities, destined to
lead.
 Gender issues were not on the table when the 'Great Man'
theory was proposed.
 Most leaders were male and the thought of a Great Woman
was generally in areas other than leadership.
 This led to the next school of Trait Theory.
2. Trait Theory
 A modification of the Great Man Theory is the Trait
Theory which argues that leadership qualities or traits can
be acquired.
 They need not always be inborn.

 states that there are certain identifiable qualities or

characteristics that are unique to leaders and those good
leaders possess such qualities to some extent.
 Leadership qualities may be inborn or they may be
acquired through training and practice.
 Similar in some ways to Great Man theories, trait theories
assume that people inherit certain qualities and traits that
make them better suited to leadership.
 3. Behavioral Theories
 are based upon the belief that great leaders are made, not
born.
 focuses on the actions of leaders, not on mental qualities or
internal states.
 people can learn to become leaders through teaching and
observation.
 a person actions determine whether he becomes a leader
not his traits.
 a person need not have great physical features or high
intelligence or other traits, the only important criteria of a
good leader is his behaviour or actions in given
situations.
 4. The Contingency /Situational Leadership Theory
 Situational leadership theory grows out of an attempt to
explain the inconsistent findings about traits and styles
/behaviors.
 Situational theory proposes that the effectiveness of a
particular style of leader behavior depends on the
situation.
 As situations change, different styles become
appropriate.
 According to this theory, no leadership style is best in
all situations.
 Qualities of leadership
 Health and physical fitness
 Mental vigor and energy
 courage to accept responsibility
 stable, persistent and thoughtful determination
 should have general educational and
 management ability of embracing foresight and the
art of handling men
 MOTIVATION
The Concept of Motivation
 The term motivation derived from the Latin word mover meaning “to
move.”
 Motivation refers to the drive and effort to satisfy a want or a goal.
 motivation is an internal state that leads to the pursuit of objectives.
 In the present context, motivation represents “those psychological
processes that cause arousal/stimulation, direction, and persistence of
voluntary actions that are goal oriented.
 Motivators : Motivators are things, which induce an
individual to perform
 A motivator is something that influences an individual's
behavior.
 It makes a difference in what a person will do.
Theories of Motivation
A. Carrot and Stick Approach
 This approach relates the use of rewards and penalties in order
to induce desired human behavior.
 It comes from the old story that to make a donkey move one
must put a carrot in front of it and if it does not move beat it with
stick from behind.
 Despite all the researches and theories of motivation that have
come to the fore in recent years, reward and punishment are still
recognized/considered by strong motivators. For centuries,
however, they were too often thought of as the only forces that
could motivate people.
 Carrot - money in the form of pay or bonuses.
 Stick – fear such as fear of loss of job, loss of income, reduction of
bonuses demotion or some other penalty.
 Money as a Motivator
 Even if under the carrot and stick approach money as a
sole motivator has been criticized, it is used as a motivator
(motivating factor) but not the only one. Money can be
used as a motivator under the following conditions.
 For people who have low-level standards of living and
who badly need it for their life.
 When the amount is so significant that the organization
uses it for competitive purposes.
 When the payment is so differentiated that even at equal
position discriminatory payment is made for people with
different levels of performance.
 B. Abraham Maslow
 One of the most widely mentioned theories of motivation is the
hierarchy of needs theory put forth by psychologist Abraham Maslow.
Maslow proposed that motivation is a function of needs, and he also
proposed that human needs are arranged hierarchically (in a form of
hierarchy). The hierarchy of needs is based on four premises:
1.  Only an unsatisfied need can influence behavior; a satisfied need is
not a motivator.
2. A person’s needs are arranged in a priority order of importance.
Thus, the priorities (hierarchy) go from the most basic needs to the
most complex.
3. As the person’s needs are met on one level, the person advances to
the next level of needs.
4. If satisfaction is not maintained for a once-satisfied need, it will
become a priority need again.
 Based on the above premises, Maslow proposed that human needs
form a five-level hierarchy
 Hierarchy of Needs

Maslow defined human needs as:

Physiological: the need for food, drink,

shelter, and relief from pain.
Safety and security: the need for freedom
from threat; the security from threatening
events or surroundings.
Belongingness, social, and love: the need for
friendship, affiliation, interaction, and love.
Esteem: the need for self-esteem and for
respect from others.
Self-actualization: the need to fulfill oneself
by maximizing the use of abilities, skills, and
potential
 Copyright © Allyn & Bacon 2007

C. HERZBERG’S TWO-FACTOR THEORY OF MOTIVATION

 Herzberg developed a theory known as the two-

factor theory of motivation.
 Traditionally,managers viewed job satisfaction
and job dissatisfaction as opposite ends.
 In contrast, Herzberg's findings suggested the
opposite of satisfaction is not dissatisfaction, but
rather ‘no satisfaction’.
 Herzberg believed that two entirely separate
sets of factors contribute to an employee’s
behavior at work
 Motivator and hygiene factors

21
 Herzberg labeled the factors that produced job
satisfaction as motivators. His analysis indicated
these factors are directly related to job content.
 Herzberg labeled the factors that led to job
dissatisfaction as hygiene's and found they are
related more to the work setting, or job context,
than to job content.
 The presence of motivators in a job, will leads
to satisfaction, the absence of motivators lead
to no satisfaction.
 The absent of hygiene's factors from a job,
will leads to dissatisfaction, the presence of
hygiene's prevent dissatisfaction(no
dissatisfaction.
23
 
HERZBERG'S MOTIVATORS AND HYGIENE'S

Motivators leading to Job Hygiene's leading to

satisfaction dissatisfaction

• Achievement • Policies and

administration
• Recognition • Supervision
• Work it self • Relations with peers
• Responsibility • Working Condition
• Advancement • Pay
• Personal growth • Job Security
 D. Theory X And Theory Y Assumptions About People

 Theory X – pessimistic and negative

 Theory Y- adopts a developmental approach/
modern/positive set of assumptions, optimistic
 A manager with Theory Y assumption will prepare
him/herself to work with people as individuals, to
involve people in the process of decision-making,
to openly encourage people to seek responsibility
and to work with people achieve their goals.
 A manager basing an operating philosophy on
Theory X would impose a directive leadership
style on the individual or work group s/he is
supervising. Coercion, negative motivation, and
refusal to allow employee participate in decision-
making would probably be the actions of the
manager.
5. ERG THEORY OF MOTIVATION
 Clayton Alderfer of Yale University identified three
basic needs of human being against five needs of
Maslow.
A. Existence needs — desires for physiological and
material well-being.
B. Relatedness needs — desires for satisfying
interpersonal relationships.
C. Growth needs — desires for continued
psychological growth and development.
 Communication in an
organization

• Communication involves transmitting
information from one party to another.

• communication to be successful, the sender

and receiver must have some signs, words or
signals in common with each other so the sent
message can be understood.
Communication
is a 2-way
interaction
between two
parties to
transmit
information and
mutual
understanding
between
themselves
 Formal and Informal Communications
Formal Communications
Communication flow in an organization
Downward
communication :
• Downward communication flows from people at
higher levels to those at lower levels in the
organizational hierarchy. 

Upward
communication:
• Upward communication travels from subordinates
to superiors and continues up the organizational
hierarchy.

Horizontal communication:
• Crosswise communication includes the horizontal flow of
information, among people on the same or similar
organizational levels, and the diagonal flow, among persons
at different levels who have no direct reporting
relationships.
 Diagonal communication involves the flow of
information among departments or individuals on
different levels of the hierarchy
 Informal Communication
 It is a communication, which is not deliberately designed
by the organization.
 It is rather created by informal groups in order to satisfy
their need to interact and share information among
themselves.
 it is a structure less network.
 Informal communication channel is commonly termed as
grapevine because of its structure less direction of flow.
ignificance of Communication
• Communication is a linking process of
management.
• Communication is the primary means by which
people obtain and exchange information. 
• Information and communication represent power
in organizations.
The end!!!
 CHAPTER 6
 THE CONTROLLING FUNCTION

 Controlling is the process through which managers assure

that actual activities conform to planned activities.
 Controlling is the process of regulating organizational
activities so that actual performance conforms to expected
organizational standards and goals.
 It is checking current performance against predetermined
standards contained in the plans.
IMPORTANCE OF CONTROLLING
 Adapting to changing conditions:

 Limiting the magnification of errors:

 To determine whether people and the various parts

of an organization are on target, achieving the
progress toward their objectives that they planned
to achieve
 THE CONTROLLING PROCESS
 1. Determine Areas to Control
 2. Establishing Standards
 3. Measuring Actual Performance
 4. Comparing Performance against Standards
 5.Taking Corrective Action (on time)
38
 types of controlling
 Based on the time period in which control is applied in
relation to the operation being performed, there are three
basic types of controls: preventive, concurrent, and
feedback.
1. Preventive/ Preliminary / Input Control:
 It focuses on the regulation of inputs to ensure that they

meet the standards necessary for the transformation

process.
 It is future oriented and takes place before the operation

begins.
 .Preventive control comes from an old saying “A gram of
prevention is worth a kg of cure.”
 e.g Entrance exams for colleges and universities,
2.Concurrent/Screening/Checking Control:
 It involves the regulation of ongoing activities that are
part of the transformational process
 On the job training, exams, tests, quizzes

 3.Feedback/Post-Action/ Output Control:

 It focuses on the end results of the process.

 It provides information for a manager to examine and

apply to future activities that are similar to the present
one
 The purpose of feedback control is to help prevent
mistakes in the future
 e.g Performance evaluation, financial statement analysis,
final exams
Managers can implement
controls before an activity
begins, during the time
the activity is going on,
and after the activity has
been completed.
CHARACTERISTICS OF AN EFFECTIVE CONTROL
SYSTEM
 Future–Oriented: To be effective, control systems
need to help regulate future events, rather than fix
blame for past events.
 Multidimensional : In most cases, control systems
need to be multidimensional in order to capture the
major relevant performance factors, such as, quality,
quantity, overhead, etc.
 Economically Realistic/ Cost Effective: The cost of
implementing a control system should be less, or at
most, equal to the benefits derived from the control
system
 Accurate: Since control systems provide the basis for future actions,
accuracy is vital. Control data that are inaccurate may be worse than no
control at all, since managers may make poor decisions on the basis of
faulty data they believe to be accurate.
 Acceptable to Organization Members: Control systems operate best
when they are accepted by the organization members who are affected by
them.
 Timely: Control systems are designed to provide data on the state of a
given production cycle or process as of a specific time.
 Reliability and Validity: Controls not only must be dependable (reliable),
but also must measure what they intend to measure (must be valid). When
controls can’t be relied on and are invalid, they are unlikely to be trusted
and can lead to very bad consequences.
 Monitorable: Another desirable characteristic of control system is that
they can be monitored to ensure that they are performing as expected.
 Organizationally Realistic: The control system has to be compatible with
organizational realities. Status differences between individuals have to be
recognized.
 Flexible: Just as organizations must be flexible to respond rapidly
to changing environments, control systems need to be flexible
enough to meet new or revised requirements.
 Focus on Critical Control Points: Critical control points include
all the areas of an organization’s operations that directly affect the
success of its key operations.
 Easy to Understand: Complexity often means lack of
understanding. The simpler the control, the easier it will be to
understand and apply.
 Emphasis on Exception: A good system of control should work
on the exception principle, so that only important deviations are
brought to the attention of management. In other words
management does not have to bother with activities that are
running smoothly.
 May Your Future
Be Full Of
Happiness and
THE END fruitfull !!!

THANK YOU VERY MUCH !!!